Why Are Chinese Celebrities Walking Away From Long-Term Contracts?

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In recent months, China’s entertainment industry has seen a noticeable wave of contract terminations and non-renewals. Names like Zhao Lusi, Cheng Yi, Wang Yibo, and Ju Jingyi have repeatedly surfaced in discussions around artists “leaving” their management companies. While such disputes are nothing new, their concentrated timing has sparked broader concern within the industry.

Historically, breakups between top-tier artists and agencies rarely unfold smoothly. Once tensions surface, public narratives tend to fall into familiar patterns: artists and fans accuse agencies of unequal resource allocation or overexploitation, while agencies emphasize contractual obligations and question artists’ loyalty after success. Beneath these individual cases, however, lies a deeper structural shift.

This latest wave is less about personal conflict and more about a rebalancing of power. As market conditions evolve, the traditional logic behind long-term contracts is being quietly dismantled. Artists now possess greater leverage, while agencies face diminishing control over exposure and career trajectories.

In earlier stages of the industry, major agencies dominated capital, resources, and distribution channels. New and mid-level artists relied heavily on long-term investment from their companies, making eight- or ten-year contracts the norm, often with revenue splits heavily favoring agencies. These arrangements were justified by the expectation of long-term returns.

That foundation has since eroded. Social media and diversified content platforms have transformed how artists gain visibility. Personal accounts have become independent assets, and breakout success is increasingly driven by specific roles, viral moments, or audience resonance—factors that companies can no longer fully engineer. As a result, artists are less willing to commit to lengthy contracts that offer limited flexibility.

Contract structures have adjusted accordingly. Fixed long-term agreements are giving way to modular arrangements, such as “N+N” terms, segmented management rights, and greater autonomy over personal branding and online presence. These changes reflect a broader redistribution of negotiating power.

When financial terms, resource alignment, or working relationships can no longer be reconciled, contract termination becomes a logical outcome. Disputes typically center on revenue sharing, career direction, or dissatisfaction with management teams. At the same time, increased legal awareness has reduced artists’ fear of punitive breach penalties, further lowering the barrier to exit.

Another notable trend is the shift in partnership models. Artists with established recognition increasingly favor personal studios and direct collaboration with production platforms, rather than full-scale agency dependence. While this grants greater independence, it also signals a transformation in the role of traditional management companies.

The industry is not moving toward a contract-free future, but rather into an era of more complex and negotiated agreements. Long-term contracts still exist, but they are no longer the default. Going forward, sustainable partnerships will depend less on duration and more on whether both sides can offer genuine value, professional support, and a balanced approach to risk.

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